Zodia Markets to Acquire Elwood Capital’s OTC Division

Elwood Capital Management, a company that specializes in OTC cryptocurrency trading and settlement services, is apparently very close

Arslan Butt•Thursday, July 11, 2024•2 min read

Elwood Capital Management, a company that specializes in OTC cryptocurrency trading and settlement services, is apparently very close to being acquired by Zodia Markets, the cryptocurrency division of the British multinational bank Standard Chartered.

This calculated action is expected to be completed by the end of the month. Also, it represents Standard Charterer’s growing engagement in the cryptocurrency space.

Standard Chartered's crypto subsidiary Zodia Markets is in talks to acquire part of a digital-asset business backed by billionaire hedge fund manager Alan Howard https://t.co/La1hSTc5EJ

— Bloomberg Crypto (@crypto) July 9, 2024

Elwood Capital Management provides OTC trading and settlement services. It is backed by billionaire hedge fund manager Alan Howard.

By acquiring Elwood Capital, Zodia Markets would be able to get licenses in Jersey, an island under British Crown dependency, as a virtual asset supplier and investment company. Zodia’s OTC settlement services are expected to be greatly improved by these licenses.

Zodia Markets, a joint venture between Hong Kong’s BC Technology Group and Standard Chartered’s venture capital unit, was founded in 2021. However due to a lack of interest in its bitcoin goods, it was forced to close down early this year.

In June, the CEO of the company, Usman Ahmad, mentioned that despite this setback, Zodia Markets is still dedicated to expanding its cryptocurrency offerings and acquiring Elwood Capital is a crucial component of this plan.

In February, Brevan Howard Asset Management colleague, Alan Howard listed a number of his personal cryptocurrency assets for sale. The hedge fund’s cryptocurrency subsidiary, Brevan Howard Digital, will receive the profits from these sales as further investments.

Meanwhile, Standard Chartered is purportedly investigating the opening of its own trading desk for Bitcoin and Ether in addition to the possible acquisition.

If this were to be introduced, Standard Chartered would be positioned as one of the first international financial institutions to engage in cryptocurrency spot trading directly. The bank’s broader goal of growing its market share in the digital asset market is aligned with this initiative.

Zodia Markets’ acquisition of Elwood Capital will strengthen its position in the growing cryptocurrency industry. Zodia Markets also worked with Fireblocks, a provider of crypto custody technology, in March to boost cross-border payments.

🚀Zodia Markets is pleased announce its strategic collaboration with @FireblocksHQ. Addressing the challenges of correspondent banking, the collaboration will improve efficiency by enabling value transfer utilising the power of #DigitalAssets. Read more👉 https://t.co/PIZm6yxMZv pic.twitter.com/6H9EGWdrsZ

— Zodia Markets (@zodiamarkets) March 14, 2024

The objective of this collaboration was to link Zodia Markets’ digital asset execution capabilities with the Fireblocks Network. Also to allows its customers to transact digital assets efficiently and promptly.

The incorporation of Elwood Capital’s OTC trading and settlement services into Zodia Markets’ offerings would serve improve Standard Chartered’s position in the emerging digital asset market.

The agreement shows how committed the bank is to providing its clients with innovative solutions and adjusting to changes in the financial sector.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.